Bitcoin Forum

l have been in bitcoin for a while now, buying and selling bitcoin. l have seen the pros and cons about bitcoin investment, and with my experience, l discovered that with careful thought, and attention, one will be making reasonable gain, sometimes small, and sometimes big. l have also heard about someone getting loan for bitcoin investment in some bitcoin exchange, but l don't know of any bitcoin exchange that is reliable, that can grant loan with reasonable interest rate. Can anyone assist to tell me the best reliable bitcoin exchange, that can grant loan with reasonable interest rate?

The market is very volatile and high risky.
It is a zero-sum game so if there are big winners, there are oppositely big losers.

First don't do this because it is superb risky.

To have loan on centralized exchanges, you must deposit your cryptocurrency, send it to your either Isolated or Cross Margin account, then use your cryptocurrency as a collateral for your loan. When your position becomes bad especially in market crash, your position will be in temporary loss that is bad enough plus with decrease of your collateral value, then exchange will liquidate your collateral.

When forced liquidations happen, you will lose very big part of your account.

 (https://coinmarketcap.com/alexandria/article/cross-vs-isolated-margin-which-one-is-better[Cross and Isolated margin, which one is better?[/url)

I don’t think people lend out their bitcoin anymore after all those lending platforms went bust last year. People lent out their BTC on Gemini and it’s basically gone. Who knows if and when they will get it back. The yield also wasn’t that high to begin with.

You get more if you lend out stablecoins. However like I said before, the risk isn’t worth it if your USDT is sent to some market maker who takes risky bets with it and ends up losing it all. Everyone withdraws and the scam is up. Avoid lending your coins if you can.

If you ever found one and they don't even ask for collateral, it is likely that they are a scam. In fact, most services are scams and their goal is just to collect your money. As mentioned above, a ton of legit businesses went bankrupt so it is unlikely that any legitimate service would risk themselves doing that. If anything, you'll probably find better luck to get a loan from your bank although the risk is so high it is not worth doing at all. Just do DCA and be patient, you'll eventually collect enough Bitcoin if long-term investment is your goal.

If you are talking about DeFi's then I would advise you against using them completely. You will still need collateral in order to get a loan and what is worse it the chances of them going away with your collateral are pretty high. Most of this so-called DeFis filed for bankruptcy and made people lose their money
If you have doubts, read about Celsius network, Blockfi etc

The guarantees that you are looking for and the price that you may get may not be good compared to your investment. If you borrow 1 bitcoin at today’s price, the return of the bitcoin at the same price after 3 months may cost you $40,000, while the loan price is now $26,000.
Therefore, for both parties, the long-term loan will be risky, and it is a loss for the borrower. If the payment is in stable currencies, why not get a loan from the bank or from your friend?

you can find better option with DeFi
Here's an investment tip: Never invest in bitcoin with money you borrowed, even though you know all the risks.

If you are thinking of a loan from someone in bitcoin from whatever platform, you could be scammed on your collateral if the platform is not reputable. I know there are lending platforms or exchange but I don't know if bitcoin is included in the lending. However, why invest with a coin that is not yours and you will have to pay about 15% in Annual Percentage Yields. That means the interest you will pay is taking away your profit, so what about if there was no profit or you end up losing the whole investment, you lose your collateral. It is not a wise decision to borrow to invest because you will be under pressure and invest wrongly.

I want you guys to know that what OP is asking or talking is called Leveraged Trading.

So the confusion about the leading platform should not interfere with the discussion here.

Anyway, most of the crypto exchanges allow users to take leverage of their capital amount which is borrowing money from the exchange to increase their potential profit but when the money is not yours the risk is higher too. So if you are seeing only the positives then let me remind the negatives of leveraged trading too which is you can loss money that you actually don't have which puts you into a situation of taking more loans to pay the debt.

Binance the biggest exchange offers that feature which is Spot trading margin up to 20x and Derivatives trading margin up to 20x so like on other exchanges the values will be different.

8 Best Crypto Margin Trading Exchanges Compared (2023) (https://coinsutra.com/margin-trading-crypto-exchanges/)

To be honest I don't know of any bitcoin exchange yet that the exchange platform can provide you with a loan.  And if a platform gives a loan, then you must keep an equivalent amount of collateral. No one will give you a loan without any collateral.  But if you have a high rank and a reputable Bitcointalk account, you can take a non collateral loan from this forum, but the repayment period will be very short, up to 3 months.

Taking loans is a big no. Whether it’s Bitcoin investments or any other investments, taking loan to invest is very risky. As when you take a loan, your next responsibility is to repay it. But in investments, there is no guarantee that you will get back the money. So I would suggest you OP to drop the idea of taking crypto loans. Regarding suggesting the best exchange, then Binance and Kucoin are my personal favourite.

And you're here claiming with your experience in bitcoin buying and selling yet you never know where to get a loan from, you're also telling us that you don't know that bitcoin is not designed to be taken for loan, a p2p network is a direct exchage means for bitcoin or you rather learn to earn it, some exchanges or organizations may actually provides such services but i can tell you it's not of benefits to you than it could cost you, don't go into loan to start all over from what you have already made as a mistake, instead, learn to earn bitcoin then work on investing the little that belongs to you.

I would like to point out at the beginning that you are setting up a wrong poll, you are only putting questions without providing options, so it is better to edit or delete it.

As for the exchanges that offer Bitcoin loans, there are many, of course, but personally I do not advise you. Cryptocurrency loans are high-risk, whether in terms of large price fluctuations or in terms of bankruptcy of loan platforms and the loss of your money.

Also, you need guarantees to obtain the loan, and with the large fluctuations in the price and the interest that you have to add on the loan, you will inevitably come out losing in the end.

I can provide you with a list of some well-known and reputable cryptocurrency loan platforms. However, please note that the status of these platforms may have changed since then, and it's important to do your own research before using any platform. Always exercise caution and verify the legitimacy of any platform you intend to use.

BlockFi
Celsius Network
Nexo
Crypto.com
YouHodler
SALT Lending
Unchained Capital
Liquid
Bitfinex
Binance

you want to borrow Bitcoin from exchange for your investment. it requires collateral from other assets you own. and of course there is interest that you have to pay.
if your goal is investment, why not accumulate Bitcoin periodically according to your ability? you cannot double the profits of the Bitcoins you borrow from exchanges in a short amount of time.
it is too risky and it can trap you for a time that may not be enough to make your assets profitable. invest in what you can afford, and don't push yourself too much.

Popular with Binance have available with loan but its not free because you need back up your fund based on how much money for loan, example when your altcoin assets price drop drastically than first time your investment you can use that assets for loan recovery and get loan with stable from Binance. If you don't have assets in Binance is not available for getting loan with Binance exchange. I don't know with other exchange have the same rule with binance about loan or not and actually there are not free you need to lock your assets as recovery based on how much fund do you get loan.

Do you know which one exchange platform with less fees on loan interest? due I have some assets price dropping is worth for getting loan but need other income for paying loan interest.

The only Exchange I know of are the following:

1. Nexo : https://nexo.com/
    2. Aqru : https://aqru.io
    3. Coinrabbit : https://coinrabbit.io/
    4. Aave : https://aave.com/
    5. Nebeus : https://nebeus.com/
    6. Youhodler : https://www.youhodler.com/
    7. Compound : https://compound.finance/
    8. Crypto.com : https://crypto.com/
    9. Binance: https://www.binance.com
    10. Coinloan : https://coinloan.io/
    
It's up to you which of them you prefer, you can see the pros and cons of each one there dude in the link I will give, Now, if you want Decentralized (Dex) you can also try Celcius Network (https://celsius.network/) These things I have given you, it is better that you do your own research, because it is better that you have ideas about what I have mentioned.

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Reference: https://www.techopedia.com/cryptocurrency/best-crypto-lending-platforms

The concept of margin and financial leverage differs from taking a loan for trading. In the first, you are in debt and you have enough to cover the debt, but you are trying to maximize your profits. In the second, you do not have capital and you are trying to borrow to get it. When you lose or lose that money, you still have a loan that you have not repaid (if We ignored the interest generated)

If he meant leverage, then it is advanced trading, and I do not recommend it for beginners. The same thing if he wants a loan, then he took a loan from the bank that is better than a crypto loan, and it is better not to borrow to invest in bitcoin.

You must have something you will have to give before any exchange will ever give you laon. We know how decentralized is Bitcoin and we may not able to get our crypto assets back ones they are taken from us. This is why people don't give out loan again like the way it used to be before. The rate of scammers are increasing everyday making people to be more conscious about giving out loans including exchanges unless you have asset that is worth more than the loan before you get what you want.

their usual condition is to provide them collateral before you get any loan. so why not sell what you have for collateral? because aside from the collateral, you will be paying interest as well. so the chance of losing your collateral and still paying for interest is not really a smart thing to do. so much better to sell your coins that you will be used for collateral, and just manage what you have. don't aim for more money because in the first place it is not yours as you need to pay it back.

I disagree to list Celsius here.

Celsius filed Chapter 11 for bankruptcy after Terra fiasco. I do no longer trust them after that but it's your choice to do this.

The archive of their previous website (https://celsius.network/archived)
Celsius Network Files Chapter 11 Bankruptcy (https://dfr.vermont.gov/consumer-alert/celsius-network-files-chapter-11-bankruptcy)

I did not follow up their changes recently but like FTX, it's hard to trust a scam company after their first scam and bad management for their company and user funds.

reputable cryptocurrency loan platforms, are you kidding me?

BlockFi : filed for Chapter 11 bankruptcy.
Celsius Network : filed for Chapter 11 bankruptcy.
Nexo: The insurance amount for all deposits is up to $775 million. If something happens, you may not get anything from it.
Crypto.com:One of the platforms expected to go bankrupt.


The higher the interest rates, the more difficult it becomes for these platforms to access liquidity, and thus the more difficult it is for them to fulfill their pledges. Consequently, they either decide to reduce the return on investment or decide to close the deposits and flee with the capital.

If they decide to reduce the return means less liquidity and difficulty in fulfilling its obligations, which means stealing depositors’ money.

Borrowing bitcoins from exchange is required a good collateral which I believe depends on how much bitcoin you are borrowing, you can as well sell the shitcoins you would have used for the collateral, and then use the money to buy bitcoin for whatever you need the Bitcoin for.

As for exchanges that Grant bitcoin loans, several of them have gone bankrupt, and even those that are still functioning are expected to also go bankrupt in a matter of time, if you want to invest in Bitcoin or into trading, please avoid borrowing, but if you must borrow, then look for family or Friends who can give you enough time to pay back and borrow from them, do not borrow from crypto exchanges, it is very risky, the fact that you can't even borrow without a tangible collateral and other forms of documentation is already a drawback on its own.

If you have been around for some time, you should have already learned that you are not supposed to take loans and invest in cryptocurrencies because there are no guaranteed profits or even if you are confident that you will surely get profit from an investment, you can't really be sure as to when that will happen because the market is highly unpredictable and your investment might not give you the desired results within your desired timeframe.

And, when you don't get your investment in profit within the desired period, you might start facing issues since you will be paying interest and the loan will default which will keep increasing the interest and you can't even sell your assets since they won't yet be in profit, so you'll get stuck in the middle.

Not only them but all lending platforms are risky to put your cryptocurrency on it. It is more risky than centralized exchanges as lending platforms will have to get money from users, circulate it around or use it somewhere to get interest and use part of interest to pay their users with their high promised APYs.

If they don't get more money from current and new users, their cash flow is broken and will face with crash. Their crash can be triggered by collapses of other platforms where they deposit user money to get interest. It is a risky cycle among lending platforms and we see how Terra, FTX crashes affected Three Arrows Capital, Celsius, BlockFi, Voyagers ...

Three Arrows Capital hit by Terra (https://www.reuters.com/technology/what-crisis-high-stakes-crypto-lending-looks-here-stay-2022-09-21/)
BlockFi argues FTX, Three Arrows Capital aren’t entitled to repayments (https://cointelegraph.com/news/blockfi-says-ftx-three-arrows-capital-not-entitled-repayments)
Behind Voyagers' fall (https://www.coindesk.com/layer2/2022/07/12/behind-voyagers-fall-crypto-broker-acted-like-a-bank-went-bankrupt/)

I think all these lending platforms going bust it all boils down to Grayscale and their GBTC trust. From those that don’t know, this trust usually traded at a premium. So you could buy spot bitcoin, and hedge with shorting GBTC and after 6 months your shares would unlock and you could close the trade and profit off the difference.

3AC borrowed BTC from Genesis which borrowed from Gemini. They locked up these BTC at grayscale and were going to profit off the difference however the premium disappeared and they were in trouble and this lead to their collapse and dozens of others.